Gold Price Forecast: XAUUSD downside remains more compelling below 200-DMA

Gold Price is licking its wounds near the $1,840 region this Tuesday. As FXStreet’s Dhwani Mehta notes, a bearish technical structure suggests more pain ahead.

XAU/USD challenges bullish commitments below 200-DMA once again

“Bears breached the $1842 key support, the confluence of the bearish 21-DMA and horizontal 200-DMA. Traders are now poised for a fresh downswing in XAUUSD once the 21 and 200-DMA bearish crossover gets validated.”

“A test of the previous week’s low of $1,829 remains well on the table should the bearish pressures intensify. Further south, the $1,820 round figure will come to the rescue of gold bulls.”

“Any recovery will need acceptance above the strong support now turned resistance at $1,842. The next upside target could be the $1,850 psychological barrier, above which Monday’s high of $1,858 could be challenged. Buyers will seek fresh opportunities above the latter to initiate a fresh upswing towards the previous week’s high of $1,870.”